The oil and gas law: Iraq’s wealth held hostage by political disputes
The oil and gas law: Iraq’s wealth held hostage by political disputes
9-17-2026
The oil and gas law remains shrouded in dust after years spent in the halls of parliament, amidst ongoing political and technical disputes that have prevented its final approval. This is despite the law’s crucial role in regulating the management of oil and gas resources and defining mechanisms for revenue distribution between the federal government, the regions, and the provinces. Among the contentious issues is the relationship between Baghdad and the Kurdistan Region regarding the management of oil fields, revenues, and constitutional powers.
In this regard, Firas al-Muslawi, spokesperson for the Reconstruction and Development parliamentary bloc, told Al-Maalomah, “The oil and gas law is one of the most frequently postponed laws in the Iraqi parliament, most recently in the previous parliamentary session. The reasons for its non-approval stem from a number of political and technical problems,” indicating that “its approval is still far off.”
He added, “Among the most prominent political reasons are the objections from the Kurdistan Region and the Kurdish blocs, despite the law’s importance and Iraq’s need for it, as it is a vital piece of legislation that can contribute to achieving social justice in the distribution of wealth among the provinces.”
Al-Musalmawi stated that “there is a need to address the outstanding points of contention between the Kurdistan Region and the federal government, and to reach understandings that allow for the enactment of the law in a way that guarantees the rights of all parties and resolves the issues related to the management of oil wealth.”
The oil and gas law faces a postponed fate after being repeatedly postponed from one parliamentary session to the next, despite its direct link to the national wealth file, the management and distribution of oil revenues, and its impact on the lives of citizens and the Iraqi economy. This makes its resolution one of the legislative issues still awaiting political and technical consensus.
For his part, MP and former minister Zuhair al-Jalabi revealed to Al-Maalomah that “the issue of annexing land from Nineveh Governorate for the benefit of the Kurdistan Region is practically settled, especially since the administrative boundaries of the governorates are defined within the Ministry of Planning and cannot be changed except by a decision of the Council of Representatives through a vote on a new administrative map of the governorates.”
He added that “the issue of the oil and gas law, despite talk of obstacles related to shared lands and the ownership of oil fields, whether for Baghdad or the region, is a bigger problem because many countries are trying to ensure that such a law is not passed.”
He explained that “the countries seeking to prevent the law’s passage benefit from oil smuggling, the rampant corruption in the relevant ministry, and the chaos associated with this file. Some countries are trying to ensure the continuation of this scenario to guarantee the achievement of their interests.”
While discussions continue within the House of Representatives and among relevant parties regarding the drafting of a law acceptable to all sides, the question remains: how long will the oil and gas law remain hostage to political disputes? Will the political forces succeed in reaching a formula that balances the constitutional powers of the federal government with the rights of the regions and provinces, ensuring more transparent management of oil wealth and the distribution of revenues according to legal and constitutional principles that safeguard the rights of all Iraqis?
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